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An all-optical switchable wavelength-converting module at 40 Gb/s line rate is demonstrated in a fully integrated InP chip. The device combines a semiconductor optical amplifier-based wavelength converter and a fast-tunable multifrequency laser. Sub-nanosecond switching among the eight channels of the integrated laser is shown, and error-free operation of the wavelength conversion process at 40 Gb/s for each wavelength is demonstrated. The applications of fast switching wavelength conversion for optical switching and packet routing are discussed.